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I am a Sole Proprietor and recently created and Employment Identifictation Number, how do I pay taxes? |
I'm New to the Game and would appreciate some advice: If you have employees, and/or if you are selling something that would be subject to sales tax, make sure that you get hooked up into your state's tax system as well as the federal. Make sure you understand the taxes you are required to collect from your employees and customers, and taxes and fees that you owe the government. If you fail to file returns or collect the appropriate amounts you could end up owing a LOT in penalties. it's all broken down on your forms. you file a schedule c for your business expenses I am a Sole Proprieter also. I have been doing my taxes myself for the past several years. You can file all your income together on on form 1040. The great part is you don't even need an EIN. The IRS recognizes your SSN as the same thing as an EIN. If you are going to do your own taxes, I would strongly recommend considering Turbo Tax. I have used several different types of tax software and Turbo Tax has been the best by far. Their results are guaranteed.You don't even have to know anything about taxes, it has step by step instructions a child could follow. They have also gotten me back more money than any other software or CPA I used prior to their product. Hope this helps you and good luck with your business. First, your S.E. income will be reported on Schedule C. You will enter the Fed Emp. ID Number on that schedule in the box indicated. The W-2 is reported as always. you have to file a schedule C |
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